Bulls Reduce Positions, Overnight Lead Futures Close Lower [SMM Lead Morning News]

SMM September 24:

Overnight, LME lead opened at $1,997/mt, fluctuating downward during the Asian session; it touched a low of $1,984.5/mt during the European session and finally closed at $1,999/mt, down 0.03%.

Overnight, the most-traded SHFE lead 2511 contract opened at 17,085 yuan/mt, touched a high of 17,100 yuan/mt at the beginning of the session before fluctuating downward, touched a low of 17,035 yuan/mt, and finally closed at 17,095 yuan/mt, down 0.18%.

Primary lead side, smelters resumed production after maintenance, coupled with the re-entry of delivery goods from last week into the circulation market, the tightness of spot cargo may ease relatively; secondary lead side, smelters are advancing production resumptions, supplemented by imported crude lead, the expectation for secondary lead enterprises to resume production has increased, but it still takes some time for production resumptions to contribute to output. Overall, before the National Day holiday, downstream enterprises still have some stocking demand, combined with current low smelter inventory, primary lead is expected to refuse to budge on prices for shipments, while secondary lead, due to regional supply differences, sees an expanded price spread for refined lead by region, and reduced premium (to SMM #1 lead average price) transactions. Overall, lead prices may still fluctuate.

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